Jaunich

PARTIAL SUMMARY JUDGMENT

I. Introduction

Defendant National Union Fire 'Insurance Company of Pittsburgh, Pa. (“National Union”) has filed a motion for summary judgment with respect to the fourth cause of action in National Union’s counterclaim against the plaintiffs. National Union's fourth claim seeks a judicial declaration that National Union was entitled to rescind the directors and officers’ liability policy it issued to the Osborne Computer Corporation (“Osborne”).

II. Applicable Law

The California Insurance Code provides that “[cjoncealment, whether intentional or unintentional, entitles the injured party to rescind insurance.” California Ins. Code § 331 (West 1972). The code defines concealment as the “[njeglect to communicate that which a party knows, and ought to communicate____” Id. § 330. Thus, concealment of information known by an insured that the insured is required to communicate to its insurer is grounds for rescission.

Section 332 describes what information a party to an insurance contract must disclose:

Id. § 332.

The obligation of an insured to disclose, as described in section 332, is however modified by section 333, which states that a party to an…